Investment Objectives

The Fund's investment objectives are to provide unitholders with (i) monthly distributions; and (ii) the opportunity for capital appreciation, by investing in an actively managed portfolio comprised primarily of high-quality dividend paying Canadian equity securities of Canadian utility issuers, pipeline issuers and telecommunications issuers and select higher yielding equity securities.

The Fund will not have a fixed monthly distribution amount. The amount of monthly distributions will be based on the Manager's assessment of anticipated cash flow and anticipated expenses of the Fund from time to time.

Investment Strategies

The Portfolio will include equity securities of Canadian utility issuers, energy issuers, energy infrastructure issuers, REITs and telecommunications and cable issuers that First Asset believes will provide superior risk adjusted returns through a combination of dividend income and capital appreciation potential. The portfolio could also include securities of dividend issuers like banks and financial services issuers that have strong track records of maintaining and raising distributions.

In addition, the Fund may hold cash or cash equivalents and other securities of publicly listed issuers from time to time.

The Fund may only invest in derivatives for hedging purposes. In particular, the Fund intends to use derivatives to hedge its exposure to foreign currencies. Generally, at least 90% of the value of any securities held in the Portfolio that are denominated in US dollars will be hedged back to the Canadian dollar. Under normal market conditions, up to 30% of the Fund's Portfolio may be invested in foreign issuers.

Sector Breakdown

As at 31 August 2018

The indicated rates of return are the historical annual compounded total returns, including changes in unit value and do not take into account sales, redemption or optional charges or income taxes payable by a security holder that would have reduced returns. The Fund was originally launched as a TSX-listed closed-end fund on April 19, 2010, and converted into an open-end mutual fund on April 19, 2012. Performance shown is since inception of the closed-end fund. In connection with the automatic conversion certain changes were made to the investment objectives, strategies and restrictions applicable to the Fund in order to conform to NI 81-102. Material among these changes is that the Fund will no longer be permitted to use leverage and an increase in the servicing fee from 0.5% to 1.0% per annum. Had these changes been in effect prior to this date the performance of the Fund could have been different.

The S&P/TSX Composite Index is a capitalization-weighted index designed to measure market activity of stocks listed on the Toronto Stock Exchange. This index is used as a benchmark to help you understand the Fund`s performance relative to the general performance of broader Canadian equity market.